The regular meeting of the Subcommittee to the State Board of Examiners was called to order at 700 West State Street, Boise, Idaho, at 1:30 p.m. pursuant to Idaho Code §67-2002 and by order of the chair.

The following members were present: Wayne Hammon, Division of Financial Management; Chuck Goodenough, Deputy Secretary of State; Steve Olsen, Deputy Attorney General, and Brandon Woolf, Office of the State Controller, as assisting secretary to the subcommittee. Also present by invitation were: Mark McClaine, Bureau of Homeland Security; Marsi Woody, Idaho State Police; Major Thornton, Idaho State Police; Marion Demer, Office of the State Controller; Bob Wells, Bureau of Homeland Security; David Tolman, Idaho Transportation Department; Gordon Wilmoth, Idaho Transportation Department; David Fulkerson, Division of Financial Management; and Debbie Wonch, Office of the State Controller.

Mr. Hammon moved to amend the agenda to include item #6, to direct the State Controller to complete the transfers authorized by SB 1227 within the limits established by the law. Mr. Olsen seconded the motion. The motion carried on a unanimous voice vote.

CONSENT AGENDA

1. MinutesApproval of official minutes for the meeting of the Subcommittee to the Board of Examiners on May 12, 2009.

Resolution: Mr. Hammon moved to approve item 1 and place it on the consent agenda. Mr. Goodenough seconded the motion. The motion carried on a unanimous voice vote.

REGULAR AGENDA

2. Bureau of Homeland Security

ID #

Description

Amount

Comments

Date to Board

2009-00086

Drug Lab

$1,149.05

Meth lab in Rathdrum, ID

06/02/09

TOTAL

$1,149.05

Discussion: Mr. McClaine explained that it was a methamphetamine drug bust. The person had just been paroled from prison. The truck he was driving belonged to a friend from Washington. When he got caught, the truck was taken to the police impound lot in Rathdrum, and that is where it was cleaned up.

Resolution:Mr. Olsen moved to approve item 2 and place it on the consent agenda. Mr. Goodenough seconded the motion. The motion carried on a unanimous voice vote.

3. Idaho State PoliceRequest pursuant to Idaho Code 67-5302(20) for the revised list of grants, projects, and agreements for overtime shifts worked by commissioned officers. The provided list was approved August 19, 2008, but has two changes for FY2010. Special Olympics has been removed and Mammoetm (Exxon Oil) has been added and will need approval as a new ONL code.

Discussion:Ms. Woody explained that a year ago they came before the Board with a list of approved grants. The Special Olympics is over, so they are removing that project from the list, and are adding one for Exxon Oil.Exxon is building a new refinery in Canada and the parts are being barged up the Columbia to Lewiston and will then be trucked (150 loads) up US 12. The large Exxon trucks will be escorted from Lewiston by ISP officers. The shipping company will pay for ISP to escort the trucks and will pay for off duty employees. At this point the agreement is still in negotiation. A set cost has not yet been determined.

Resolution:Mr. Hammon moved to approve item 3 and place it on the consent agenda. Mr. Goodenough seconded the motion. The motion carried on a unanimous voice vote.

4. Idaho Transportation DepartmentRequest authorization to pay $21,539.78 for comp time balances in excess of 240 hours for four (4) FLSA non-covered employees to begin FY2010 with all employees at or below the new caps established by SB 1252. ITD and these employees have made a good faith effort to reduce comp time balances from last year’s request of $71,052.44.

Discussion:Mr. Tolman noted that a year ago they had twelve employees on the list that had comp time in excess of the 240 hour limit. There are only four employees left with balances at this time. Each of those employees have taken over 200 hours off in the last year. The department is requesting to have the balances paid off, or else the beginning in FY2010 the balances will be eliminated. Currently the balance total is around $17,000-$18,000.

Mr. Olsen said that the coming pay period is the cutoff.

Mr. Hammon asked if the Controller’s Office has run a list of other agencies with comp time balances.

Mr. Woolf commented that there are 35 employees that are over the 240 hours in roughly 10 or 12 agencies.

Mr. Olsen said there are 13 employees in the Attorney General’s office that are in the same boat and they will loose those hours.

Mr. Hammon said that the Legislature knew what they were doing when they passed this law. Agencies were given a year. The Legislature knew there would be people that would have this fate. He said he is inclined to vote against this request. The employees were able to burn a lot of hours, but there are 31 other people in the state caught in the same situation.

Mr. Olsen asked if there was anything about the four employees that is different or special to plead their case.

Mr. Tolman said of these individuals, they have been long-term employees. They have put in time above and beyond their 40 hours per week, at a donation to the state, since they have not been able to accrue comp time. The department is asking to get the balances down to the new max.

Mr. Olsen said that he is very empathetic to the case of the employees. He stated that in the Attorney General’s office, they have a number of employees who will be losing their hours as well. Their office is not going to make the request. It is not wrong to make this request, but he advised Mr. Tolman that if he goes before the Board, the Attorney General will be there with 13 people in the same situation.

Resolution:Mr. Goodenough moved to move item 4 to the Regular agenda with a recommendation for disapproval. Mr. Hammon seconded the motion. The motion carried on a unanimous voice vote.

5. Office of the State ControllerRequest for proposed re-adoption of the State Real Estate Relocation Policy and Procedures, as well as a proposed amendment regarding employee qualifying periods.

Discussion:Mr. Woolf explained that the Real Estate Relocation Policy has been expired for several years. The Controller’s office is asking for a readoption for the policy as it currently stands. If agreed upon, there is an amendment to the policy regarding qualifying periods.

Mr. Hammon said the amended policy would extend the current qualifying period of up to twenty months to a period not to exceed thirty-six months.

Mr. Woolf noted that if this item is approved, then an item 8 would be included for the full board next week with Maj. Thornton’s pending case request.

Mr. Olsen asked if they should continue on with having the policy expire every 4 years.

Mr. Woolf noted that this is the only Board of Examiners policy that has a sunset clause.

Resolution:Mr. Goodenough moved to reinstate the policy with the proposed amendment without the sunset clause and place it on the regular agenda. Mr. Hammon seconded the motion. The motion carried on a unanimous voice vote.

6. Division of Financial ManagementRequest that the Board of Examiners direct the State Controller to complete the transfers authorized by SB 1227 within the limits established by the law.

Discussion:Mr. Hammon explained that at the end of the fiscal year they anticipate being about $25.4 million short of the constitutional required balanced budget. In anticipation of this likelihood, the Legislature passed SB 1227 which provides for the Board of Examiners to direct the State Controller to transfer money from two accounts: The Public Education Stabilization Fund and the Budget Stabilization Fund to cover that shortfall. We will do that transfer, closing the year with a balanced budget. At the July meeting, the Controller will report back on the dollar amount that was transferred.

Resolution:Mr. Olsen moved to place item 6 on the regular agenda with recommended approval. Mr. Goodenough seconded the motion the motion carried on a unanimous voice vote.

INFORMATIONAL AGENDA

7. State Insurance Fund a. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of April, 2009.

Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight draft for the month of April, 2009.

Estimated expenditure for Petroleum Clean Water Trust Fund

$750,000.00

Funds Expended in April, 2009:

Payroll

76,093.71

Operations

6,614.70

Claim Costs

88,806.12

Total

$171,514.53

A meeting agenda will be available at the Idaho State Controller’s Office, 700 West State Street, Boise, Idaho, two (2) working days before the meeting.

If you have questions or would like to arrange auxiliary aides or services for persons with disabilities, please contact the Idaho State Controller’s Office at (208) 334-3100. Accommodations for auxiliary aides or services must be made no less than five (5) working days in advance of the meeting.

The CONSENT AGENDA addresses routine items the board may approve without discussion.

The REGULAR AGENDA addresses policy and program items the board may wish to discuss prior to making a decision.

The INFORMATION AGENDA provides information only.

The agendas are subject to change and the Board may move an item from one agenda to another.